Bitcoin Relief Rally Stalls as Selling Pressure Emerges, Crypto Market Faces Correction

Bitcoin (BTC) attempted to rally this week but faced intense selling near $67,000, leading to a projected minor loss of 2% for the week. Analyst Rekt Capital warns of a potential further dip within two weeks as BTC enters the "Post-Halving 'Danger Zone.'" Outflows from Bitcoin ETFs add to near-term pessimism. Key altcoins NEAR, AR, CORE, and BONK show bullish signs, potentially initiating a recovery, while keeping resistance levels in check.

Bitcoin's Relief Rally Halted by Selling Pressure, Crypto Market Poised for Correction

Amidst the ongoing volatility in the cryptocurrency market, Bitcoin (BTC) attempted to initiate a relief rally this week, only to be met with intense selling pressure near the $67,000 mark. The largest cryptocurrency by market capitalization is currently on track to end the week with a minor loss of approximately 2%.

Prominent trader and analyst Rekt Capital cautions that Bitcoin has entered the "Post-Halving 'Danger Zone,'" suggesting the possibility of a further dip within the next two weeks. Adding to the bearish sentiment, recent data indicates significant net outflows from spot Bitcoin exchange-traded funds (ETFs). Farside Investors reported that these ETFs witnessed net outflows of $218 million on April 25, following a $120 million outflow the previous day.

Technical Analysis: Bitcoin (BTC)

Bitcoin has been trading within a range between $59,600 and $73,777 for several days, reflecting indecision among investors regarding the future direction of the cryptocurrency. Technical analysts anticipate that buyers will defend the $59,600 support level, as a breach below this point could exacerbate the correction, potentially leading to a Fibonacci retracement level of $54,298.

On the upside, a potential breakout above $73,777 could signal the commencement of a new leg of the uptrend, targeting $84,000. The moving averages remain flat, and the RSI hovers around the midpoint, indicating a balance between supply and demand.

Near Protocol (NEAR)

Near Protocol (NEAR) made a breakout attempt, rising above the descending channel pattern on April 25. However, the bears have initiated a counteroffensive, attempting to suppress the price near $7.70. If NEAR falls back into the channel, it might suggest a bear trap, potentially leading to a decline toward $5.90.

Conversely, a sustained breakout above $7.70 would imply a shift in momentum towards the bulls, potentially igniting a rally to $9. The moving averages are sloping upward, and the RSI is positive, suggesting a slight advantage for the bulls.

Arweave (AR)

Arweave (AR) surged above both moving averages on April 25, signaling a potential resurgence of bullish sentiment. Bears attempted a pullback, but the bulls defended the dip to the 20-day EMA ($32.19) on April 27. This suggests a shift in sentiment, with buyers becoming more active on price dips.

A break above $40 could pave the way for a rally to $47.52, while a failure to maintain support above the 20-day EMA could lead to a drop to $22. The formation of an inverse head-and-shoulders pattern could indicate further upside potential if the price breaks above the neckline and closes above it.

Core (CORE)

Core (CORE) has taken support at the 20-day EMA ($2.23) on multiple occasions recently, demonstrating positive sentiment. A breakout above $2.91 would confirm a resurgence of bullish momentum, potentially leading to a surge toward $4.

Conversely, a breakdown below the 20-day EMA would suggest that bears are still in control, potentially causing a drop to the 50-day SMA ($1.72). The moving averages are range-bound, and the RSI is neutral, indicating a lack of clear dominance between bulls and bears.

Bonk (BONK)

Bonk (BONK) rallied above the moving averages on April 23, indicating a potential end to the corrective phase. Bears attempted to pull the price below the moving averages, but bulls held their ground, suggesting a shift in momentum towards the bullish side.

An inverse H&S pattern could form if the price breaks above $0.000030, targeting $0.000048. However, bears could attempt to suppress the price below the moving averages, potentially leading to a decline toward $0.000019.

Conclusion

The cryptocurrency market remains in a state of limbo, with Bitcoin and altcoins consolidating within defined ranges. Recent outflows from spot Bitcoin ETFs and bearish sentiment in the Post-Halving 'Danger Zone' may prolong the correction phase. However, the technical analysis of individual cryptocurrencies reveals potential for both bullish and bearish scenarios, indicating that the market is still highly volatile. Traders are advised to exercise caution and monitor price action closely for any breakout or breakdown opportunities.